Ukraine became independent again when the Soviet Union dissolved in 1991. This dissolution started a period of transition to a market economy, in which Ukraine was stricken with an eight-yearrecession.[13] Since then, however, the economy experienced a high increase in GDP growth. Ukraine was caught up in the worldwide economic crisis in 2008 and the economy plunged. GDP fell 20% from spring 2008 to spring 2009, then leveled off as analysts compared the magnitude of the downturn to the worst years of economic depression during the early 1990s.[14] However, the country remains a globally-important market and supplier, particularly, the world's third biggest grain exporter (as of 2011).[15]

Economy

In Soviet times, the economy of Ukraine was the second largest in the Soviet Union, being an important industrial and agricultural component of the country's planned economy.[5] With the dissolution of the Soviet system, the country moved from a planned economy to a market economy. The transition process was difficult for the majority of the population which plunged into poverty.[140] Ukraine's economy contracted severely following the years after the Soviet dissolution. Day to day life for the average person living in Ukraine was a struggle. A significant number of citizens in rural Ukraine survived by growing their own food, often working two or more jobs and buying the basic necessities through the barter economy.[141]

In 1991, the government liberalized most prices to combat widespread product shortages, and was successful in overcoming the problem. At the same time, the government continued to subsidize state-run industries and agriculture by uncovered monetary emission. The loose monetary policies of the early 1990s pushed inflation to hyperinflationary levels. For the year 1993, Ukraine holds the world record for inflation in one calendar year.[142] Those living on fixed incomes suffered the most.[49]

Prices stabilized only after the introduction of new currency, the hryvnia, in 1996.

The country was also slow in implementing structural reforms. Following independence, the government formed a legal framework for privatization. However, widespread resistance to reforms within the government and from a significant part of the population soon stalled the reform efforts. A large number of state-owned enterprises were exempt from the privatization process.

In the meantime, by 1999, the GDP had fallen to less than 40 percent of the 1991 level,[143] but recovered to slightly above the 100 percent mark by the end of 2006.[92] In the early 2000s, the economy showed strong export-based growth of 5 to 10 percent, with industrial production growing more than 10 percent per year.[144] Ukraine was hit by the economic crisis of 2008 and in November 2008, the IMF approved a stand-by loan of $16.5 billion for the country.[145]

Ukraine's 2010 GDP (PPP), as calculated by the CIA, is ranked 38th in the world and estimated at $305.2 billion.[5] Its GDP per capita in 2010 according to the CIA was $6,700 (in PPP terms), ranked 107rd in the world.[5] Nominal GDP (in U.S. dollars, calculated at market exchange rate) was $136 billion,ranked 53st in the world.[5] By July 2008 the average nominal salary in Ukraine reached 1,930 hryvnias per month.[146] Despite remaining lower than in neighboring central European countries, the salary income growth in 2008 stood at 36.8 percent[147] According to the UNDP in 2003 4.9 percent of the Ukrainian population lived under 2 US dollar a day[148] and 19.5 percent of the population lived below the national poverty line that same year.[149]

The country imports most energy supplies, especially oil and natural gas, and to a large extent depends on Russia as its energy supplier. While 25 percent of the natural gas in Ukraine comes from internal sources, about 35 percent comes from Russia and the remaining 40 percent from Central Asia through transit routes that Russia controls. At the same time, 85 percent of the Russian gas is delivered to Western Europe through Ukraine.[154]

The World Bank classifies Ukraine as a middle-income state.[155] Significant issues include underdeveloped infrastructure and transportation, corruption and bureaucracy. In 2007 the Ukrainian stock market recorded the second highest growth in the world of 130 percent.[156] According to the CIA, in 2006 the market capitalization of the Ukrainian stock market was $111.8 billion.[5] Growing sectors of the Ukrainian economy include the information technology (IT) market, which topped all other Central and Eastern European countries in 2007, growing some 40 percent.[157]

Corporations

Ukraine has a very large heavy-industry base and is one of the largest refiners of metallurgical products in Eastern Europe.[158] However, the country is also well known for its production of high-technological goods and transport products, such as Antonov aircraft and various private and commercial vehicles.[159] The country's largest and most competitive firms are components of the PFTS index which is traded on the PFTS Ukraine Stock Exchange.

Ukraine is regarded as being a developing economy with high potential for future success, however such a development is thought to be likely only with new all-encompassing economic and legal reforms.[161] Although Foreign Direct Investment in Ukraine has remained relatively strong ever since recession of the early 1990s, the country has had trouble maintaining stable economic growth. Issues relating to current corporate governance in Ukraine are primarily linked to the large scale monopolisation of traditional heavy industries by wealthy individuals such as Rinat Akhmetov, the enduring failure to broaden the nation's economic base and a lack of effective legal protection for investors and their products.[162] Despite all this, Ukraine's economy is still expected to grow by around 3.5% in 2010.[163]

This list includes the largest companies by turnover in 2008, but does not include major banks or insurance companies:

Transportation

Most of the Ukrainian road system has not been upgraded since the Soviet era, and is now outdated. The Ukrainian government has pledged to build some 4,500 km (2,800 mi) of motorways by 2012.[166] In total, Ukrainian paved roads stretch for 164,732 kilometres (102,360 mi).[5] The network of major routes, marked with the letter 'M' for 'International' (Ukrainian: Міжнародний), extends nationwide and connects all the major cities of Ukraine as well as providing cross-border routes to the country's neighbours. Currently there are only two true moto